Naresh, Raj Kumar and Bishwajeet are equal partners Raj Kumar decides to retire On the date of his retirement, the Balance Sheet of the firm showed the following-Solution

Q.4. Naresh, Raj Kumar and Bishwajeet are equal partners. Raj Kumar decides to retire. On the date of his retirement, the Balance Sheet of the firm showed the following: General Reserves Rs 36,000 and Profit and Loss Account (Dr.) Rs 15,000.

Pass the necessary journal entries to the above effect.

SOLUTION

Date	Particulars		L.F.	Amount (Rs.)	Amount (Rs.)
	General Reserve A/c	Dr.		36,000
	To Naresh’s capital A/c				12,000
	To Raj kumar’s capital A/c				12,000
	To Bishwajeet’s capital A/c				12,000
	(Being General Reserve distibuted among the partners in the ratio of1:1;1)
	Naresh’s capital A/c	Dr.		5,000
	Raj kumar’s capital A/c	Dr.		5,000
	Bishwajeet’s capital A/c	Dr.		5,000
	To Profit and loss A/c				15,000
	(Profit and loss’s A/c Dr. balance written off)

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